When looking at financial ratios, how does one determine whether or not it is good or bad relative to other companies? Where can you find a resource/benchmark to compare ratios to? For example how would I know if a P/E ratio is good if I just look at one company? Is there a breakdown I can find by industry’s?

Basically, just the title, having trouble figuring out what sites are the most reliable and extensive. Any help, thanks?

The reason I ask is this: if you have increasing equity either from your liquid share investments or properties, how comfortable are you to increase your debt through cheap loans now to invest in more properties and shares? How do you factor in serviceability and the more important thing, your emotion or risk appetite towards higher level debt? What's your percentage at the moment? A quick calculation and we're currently at 25% debt to equity ratio with a 40/60 split in properties / liquid assets.

Edit: when I say personal debt, I actually mean personal debt used for investment purposes.

Hey guys,

I posted about this tool I made months ago in Valueinvesting and wanted to share it again since I've made some updates.

The site is Stock Comparer

You can use it to compare financial data and ratios from different stocks on the same charts and save your comparisons with notes.

The free version has a year's worth of stock data.

It has stock data for the US, Canada, UK, Australia, and India markets.

Hopefully you guys find this tool useful! Please let me know if you have any feedback :)

Thank you!

Was wondering if anyone has a good source for obtaining financial ratios by industry? Last source I had was CCH's Almanac of Financial Ratios the 2012 edition. But finding anything updated is impossible, even on their site its no longer available even for the latest ones for ebook or paperback. And the paperback goes for $250-$300 used. The 2012 came with a cd with pdfs of the reports per industry which was great but looking for only ebook/pdf for next copy. Hell I don't even have a cd drive so looking for solely pdf/ebook only.

Or if someone knows of a more relevant site or resource similar to this it would really help out.

Hello, I am an engineer, doing one of my assignments on strategic management where I have to do SWOT analysis, I was wondering if I can use the financial ratios for it? If yes, then what ratios I may use for each word(like strengt, weakness...) ?

Or should I just do ratio analysis and make separate topic in the assignment?

Moreover, any website would you recommend me where I can find these ratios? Annually? Company I am thinking for the assignment is Tesla.

This is peak nerd: https://www.youtube.com/watch?v=qDgeZthLALg

1 + Debt / Equity = Assets / Equity ?

I'm just having trouble putting the pieces together

I wrote 5 simple vital ratios to track your journey to financial independence last week.

I came across a lot of financial metrics but it is always challenging to narrow down to just a few that gives you the biggest bang for the buck.

Just focus on a few, keep it simple, you will stay more motivated because it is easier.

So Sarah in the article I read came up with 5. 4 of them are essentially financial.

1. Your Net Worth over Time

https://preview.redd.it/78snh4q790j71.png?width=673&format=png&auto=webp&s=4371e56a7a0a0e12f9e8ad18e37192fbba89f4c9

Not just your net worth today, but spend 2 hours a month or quarterly to tally up the valuation of your assets and liabilities. Over time you get a graph like this.

If it is progressing well, you should be doing more things right than wrong.

If it is not going up, it will be good to find out why.

You can always break up your net worth into a few components that are more meaningful. Net worth by itself may not be as useful as the investable wealth.

Calculating your net worth

Take all that you own:

1. Cash, deposits, fixed deposits
2. Investments
3. Residential property
4. Investment property
5. Businesses
6. Government Pension
7. Possession of Resale Value

Deduct what you owe:

1. Vehicle loan
2. Mortgage loan
3. Loans on margin
4. Unsecured loans

Whatever is leftover is your net worth.

Tabulate your net worth periodically. Maybe once a month. Or once a quarter. You should have a nice graph.

Personally, I would track different kinds of net worth or net equity because they tell a different story:

1. Liquid net worth – portion of assets, net of debt that you can sell at a whim
2. Net investable assets – portion of assets, net of margin loans, investment property loans, that has potential to generate future cash flow that would be useful for you.

2. Debt / Income Ratio

This one tracks how much monthly servicing you are taking on relative to your income.

Generally, we want this line to come down over time.

This one shows whether you are in over your head on leverage.

How to calculate:

Add up all your monthly debt payments:

1. mortgage
2. auto loans
3. personal loans
4. credit cards
5. school loans

Divide them by your pretax monthly income.

3. Months of Safety / Freedom

https://preview.redd.it/iful4so2a0j71.png?width=868&format=png&auto=webp&a

Personally I consider myself a growth investor, but I care about value metrics to invest with a margin of safety and avoid hype-traps. Here are some practical tools to assist when valuing companies before considering an investment.

First, some definitions:

Market Cap = # of shares * price of a share. The total value of a company.

Enterprise Value (EV) = market cap - cash on hand + debts. If you were to buy out the whole company this is what it would cost you. (May be more useful than market cap because it isn't distorted by debt levels.)

Value investing to me means thinking of a stock as ownership in an ongoing business (rather than just a ticker that moves up and down in price), valuing that business in terms of its future cash flows, and investing at a price where you have a margin of safety in case your estimated value of the business was inaccurate.

Valuation Metrics:

Some of these are easily displayed on various financial sites; others may require you to look into a company's balance sheet and build a spreadsheet yourself to calculate them. I'm writing this up to provide some of the intuition behind the numbers.

• Price/Earnings (P/E): everyone knows this one, including company managers, and there's strong motivation to "game" earnings through various tactics. Low P/E is the market expressing low expectations for future earnings growth. Buying low P/E stocks simply because they're "cheap" can drop you into value traps which are cheap for a good reason.

Typically Earnings will refer to past (trailing twelve months) earnings; you may instead want to consider future, projected Earnings. But sometimes projections are wrong.

• Price/Sales Ratio (P/S): earnings are easy to manipulate but sales figures, less so. A low P/S ratio means a company sells a lot relative to its market cap; it's possible they're not making much money because their operating margins are poor. If you think a company has the ability to improve profit margins, low P/S may find you a good value. [See Ken Fisher's old book, Super Stocks, for a full case about why low P/S is a good screen].

• Price/Book (P/B): book value is measure of a company's assets if added up by an accountant (often meaning original purchase price). Old Ben Graham "net-nets" would screen for book value to look for companies with more assets than enterprise value - worth more dead than alive - as ultimate margin of safety. However, those are basically never found these days, and with

Hey guys,

I posted about this tool I made months ago in r/undervalued and wanted to share it again since I've made some updates.

The site is Stock Comparer

You can use it to compare financial data and ratios from different stocks on the same charts and save your comparisons with notes.

The free version has a year's worth of stock data.

It has stock data for the US, Canada, UK, Australia, and India markets.

Hopefully you guys find this tool useful! Please let me know if you have any feedback :)

PS: I've also posted about this on a similar group called r/valueinvesting so some of you may have seen this before.

Thank you!

Personally I consider myself a growth investor, but I care about value metrics to invest with a margin of safety and avoid hype-traps. Here are some practical tools to assist when valuing companies before considering an investment.

First, some definitions:

Market Cap = # of shares * price of a share. The total value of a company.

Enterprise Value (EV) = market cap - cash on hand + debts. If you were to buy out the whole company this is what it would cost you. (May be more useful than market cap because it isn't distorted by debt levels.)

Value investing to me means thinking of a stock as ownership in an ongoing business (rather than just a ticker that moves up and down in price), valuing that business in terms of its future cash flows, and investing at a price where you have a margin of safety in case your estimated value of the business was inaccurate.

Valuation Metrics:

Some of these are easily displayed on various financial sites; others may require you to look into a company's balance sheet and build a spreadsheet yourself to calculate them. I'm writing this up to provide some of the intuition behind the numbers.

• Price/Earnings (P/E): everyone knows this one, including company managers, and there's strong motivation to "game" earnings through various tactics. Low P/E is the market expressing low expectations for future earnings growth. Buying low P/E stocks simply because they're "cheap" can drop you into value traps which are cheap for a good reason.

Typically Earnings will refer to past (trailing twelve months) earnings; you may instead want to consider future, projected Earnings. But sometimes projections are wrong.

• Price/Sales Ratio (P/S): earnings are easy to manipulate but sales figures, less so. A low P/S ratio means a company sells a lot relative to its market cap; it's possible they're not making much money because their operating margins are poor. If you think a company has the ability to improve profit margins, low P/S may find you a good value. [See Ken Fisher's old book, Super Stocks, for a full case about why low P/S is a good screen].

• Price/Book (P/B): book value is measure of a company's assets if added up by an accountant (often meaning original purchase price). Old Ben Graham "net-nets" would screen for book value to look for companies with more assets than enterprise value - worth more dead than alive - as ultimate margin of safety. However, those are basically never found these days, and with